Natural gas prices will remain below $4 for the next three years, resulting in less revenue for the state and local communities like Laramie, according to a statewide report released this month.
In its monthly report released on Friday, the Consensus Revenue Estimating Group (CREG) revised its revenue projections for the 2013-14 biennium budget due to a drop in estimated prices of natural gas (which consists primarily of methane) from what was predicted in October’s report.
“That was the biggest change in the January CREG forecast compared to October,” Senior State Economist Jim Robinson said on Monday.
Forecasted prices for Wyoming methane were reduced from $4 per million cubic feet (mcf) in the October CREG report to $3.25 for the 2012 calendar year, $3.50 in 2013 and $3.75 in 2014.
Robinson said the drop in estimated natural gas prices could result in more than $100 million in lost projected revenues for the state. MORE …